Vertex Pharmaceuticals Stock Sinks as Costs Soar
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Key Takeaways
Vertex Pharmaceuticals missed first-quarter profit and revenue forecasts as costs jumped.
The biotech firm also posted a decline in sales outside the U.S. because of intellectual property rights violations in Russia.
Vertex raised the lower end of its 2025 guidance as it sees higher demand for its cystic fibrosis treatments.
Shares of Vertex Pharmaceuticals (VRTX) slumped 12% Tuesday, a day after the biotech firm reported worse-than-expected results as costs increased.
Vertex posted first-quarter adjusted earnings per share of $4.06, with revenue rising 3% year-over-year to $2.77 billion. Analysts surveyed by Visible Alpha were looking for $4.19 and $2.83 billion, respectively.
U.S. revenue grew 9% to $1.66 billion in part because of higher prices. However, outside the U.S. revenue dropped 5% to $1.11 billion because of a decline in sales in Russia, where the company said it is "experiencing violation of its intellectual property rights."
Total expenses skyrocketed nearly 40% to $2.14 billion, which Vertex blamed mostly on "continued R&D investment in support of multiple mid- and late-stage clinical development programs and increased commercial investment to support the launch of JOURNAVX," its non-opioid pain medicine. In addition, it also had a $379.0 million intangible asset impairment charge associated with its experimental diabetes treatment VX-264, which it won't be advancing for additional clinical development.
Vertex raised the low end of its full-year revenue guidance to $11.85 billion from $11.75 billion as it sees continued growth in demand for its cystic fibrosis drugs, including the recently launched Alyftrek. The company did not change its upper end outlook of $12.0 billion.
Even with today's slide, shares of Vertex Pharmaceuticals are up almost 10% in 2025.
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